F9 Revision Test - Section C.xlsx

F9 Revision Test - Section CThis section of the exam contains two constructed response questions. Please note that you must complete Sections A and B of the Revision Test in the interactive PDF. Each question contains a scenario which relates to one or more requirement(s) which may be split over multiple tabs in this excel document Each question is worth 20 marks and is compulsory. This exam section is worth 40 marks in total.Important: Just as in the live exam, markers will give credit for workings as long as these are within the answer space. Markers will be able to see formulae in cells in spreadsheet answers.Please save this excel copy after you complete your Section C answers and submit it for marking to your tutor along with your completed Section A and B in PDF format.The content for this F9 revision test has been provided by BPP Learning Media.a) Calculate the theoretical ex rights price per share prior to investing in the proposed business expansion.a) Calculate the theoretical ex rights price per share prior to investing in the proposed business expansion.4 marksa) Calculate the theoretical ex rights price per share prior to investing in the proposed business expansion.b) Calculate the expected share price following the proposed business expansion using the price/earnings ratio method.b) Calculate the expected share price following the proposed business expansion using the price/earnings ratio method.4 marksb) Calculate the expected share price following the proposed business expansion using the price/earnings ratio method.c) Discuss whether the proposed business expansion is an acceptable use of the finance raised by the rights issue, and evaluate the expected effect on the wealth of the shareholders of Dartig Co. 6 marksDouble-click in the box to start typing answer and click 'OK' if a message window appears.d) Using the information provided, calculate the ex div share price predicted by the dividend growth model and discuss briefly why this share price differs from the current market price of Dartig Co.d) Using the information provided, calculate the ex div share price predicted by the dividend growth model and discuss briefly why this share price differs from the current market price of Dartig Co.6 marksd) Using the information provided, calculate the ex div share price predicted by the dividend growth model and discuss briefly why this share price differs from the current market price of Dartig Co.a) i) Calculate the net present value of the proposed investment in product P.a) ii) Calculate the internal rate of return of the proposed investment in product P.12 marks3 marksa) i) Calculate the net present value of the proposed investment in product P.a) ii) Calculate the internal rate of return of the proposed investment in product P.b) Advise on the acceptability of the proposed investment in product P and discuss the limitations of the evaluations you have carried out.5 marksDouble-click in the box to start typing answer and click 'OK' if a message window appears.